Question
Saturday Sales Marketing (SSM) rents space at Mega Warehouse Store the first Saturday of each month. The fixed daily rental rate is $2,500. The rented
Saturday Sales Marketing (SSM) rents space at Mega Warehouse Store the first Saturday of each month. The fixed daily rental rate is $2,500. The rented space is then used to demonstrate and sell products directly to Mega's customers. SSM is considering two different product promotions for an upcoming sales event. The first product is a sonic toothbrush handle that sells for $79, and costs SSM $59. Each purchaser will usually buy 8 replacement brush sets for $8 each, with a unit cost of $5 each. The second product is a coffee maker that sells for $99, and costs SSM $89. The coffee makers uses disposable coffee cartridges that cost $4 per dozen, and sell for $12 per dozen. Each coffee maker purchaser usually buys 4 dozen coffee cartridges and complete the break-even analysis.
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